Swing and Intraday Set-ups

Originally posted by liltrdr
This is to anybody who wants to answer. Do these "set-ups" have any kind of edge?

Head and Shoulders
Double bottom/top
Triple bottom/top
A triple crossover of moving averages
Stochastic divergences?
More...

I can't say much about H&S, DT/DB, TT/TB.

But for triple cross over and stoch divergence... I can tell you that as trading signals, these two are crap.... as are most other stuff taught in Technical Analysis books.

It's the stuff that are described in commisso's post that is truely an edge, set ups that can define very thin risk.
 
Excellent post Commisso. This is the real meat and potatoes that many people will find useful, not the exhortions by some to "trade with the trend", etc. which are vague and of little practical value to most. It's all about edges and your setup clearly defines an edge.
 
Another similar example of this swing setup--uptrend, pullback to minor support and a 20 ma, reversal day was VITR on 12/14/01-which has turned into somewhat longer swing than I normally hold on to, but I'm liking it more today as it appears to have broken out of consolidation and set a 10 month high
 
I have a watchlist of a little over a thousand stocks in all different sectors that I scan using eod daily charts using trade station... I also manualy flip thru each and every one... I also use Radar Scan to scan intraday set-ups but have not used it recently,as 90% of my trades are keyed off of daily charts...

Glad you got something out of the example...

PEACE and good trading,
Commisso
 
I just wanted to do a quick follow up on the stock that I used for the set-up explanation...To give a better idea of how I would have managed the trade...

The maximum risk you would have had to assume yesterday would have been .20...So we will use that as our intial risk and 13.20 as the entry...

Entry -- 13.20
Stop -- 13
1st Exit 13.60 1/3 of shares ( I peel 1/3 of my swing positions at 2r and then move stop to be) = 2r
2nd Exit 14.90 1/3 of shares (.10 below the prior high of 12/27) = 8r
3rd Exit I would have kept at least 1/3 in anticipation of a nh, being that both the naz and LGTO closed in the top of its range...

Of course all of this is in hindsight and i did not actualy take the trade, but this is how I typicly manage the trade...

Hope this can help,
Commisso
 
Commisso,

Please clarify this:

Entry -- 13.20
Stop -- 13
1st Exit 13.60 1/3 of shares ( I peel 1/3 of my swing positions at 2r and then move stop to be) = 2r

After you pare out 1/3 at the 13.60 2r target, do you move your stop to breakeven at 13.20, or to 1r at 13.40, or elsewhere?. Not sure what you mean by moving the stop to be 2r (i.e., 13.60) as you would surely be stopped out immediately. Thanks.
 
Magna,

I guess I should have put caps on "be", but I meant I move the stop to break even...

On this type of play I usualy do it either one of two ways;
1) Leave stop at initial risk level (worst case scenario is a scratch)
2) I'll move the stop up to breakeven

But I always peel off between 1/3 to 1/2 of the line once I get 2r...I do this for a few reasons but mainly because I have to reduce overnight exposure, being that this is a multi-session play and the line usualy represents a large portion of my overall equity...

PEACE and good trading,
Commisso
 
ive been looking at some charts and came up with a couple of ideas.. i thought i would put them on the table and see what you guys think..

MANU

similar to the setup Commisso explained i think.. stock is in an uptrend on the daily.. pulls back to the 38% fib area and also the 200ma on the daily.. if it trades above Fridays close then i think its a buy..

(note: im a scalper so i would only enter on an intraday setup with a really tight stop..)

-qwik
 

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XMSR

here is another one that is somewhat similar.. it pulled back to the 38% fib and closed just above its daily 20ma.. a move above the close would be an entry signal with a close stop..

-qwik
 

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